There’s no two ways about it, Tesla’s earnings released overnight were woeful. 

The company recorded revenues of $19.1bn in the first quarter, a huge miss of the $21.1bn a consensus of analyst forecasts had predicted. EPS was $0.27 versus expectations of $0.43.

“Tesla’s first-quarter delivery and production numbers on 2 April were as ugly as its Cybertruck design. That meant expectations were rock-bottom in the run-up to its financial results and it’s why the shares didn’t tank upon release of the Q1 earnings,” said Dan Coatsworth, investment analyst at AJ Bell.

Tesla’s problems are well-documented. Increased competition has taken a bite out of Tesla’s market share, and the CEO’s antics are proving to be a significant turn-off for customers.

Tesla shares fell less than 1% in the immediate reaction in after-hours trading following the release of the numbers. The benign response suggests that much of the bad news is already reflected in the price, and sentiment can’t get much worse.

Such a dynamic is required for an asset to bottom and rebound. If most of the investors seeking to sell the stock have already done so, it leaves bulls a clear path to the upside. 

There are also several catalysts that could fire the stock up again. 

Musk stepping back from his role at the US government is the most obvious.

Elon Musk’s stint in White House looks to be coming to an end. Reports suggest that his work Department of Government Efficiency has a time limit and Trump is becoming wary of the risks of having him around. Musk himself said he will reduce the time spent at DOGE from May.

With Musk now set to step down, everyone involved stands to benefit, not least Tesla shareholders. When news broke overnight that Musk would lessen his time at Trump’s side, the stock rallied.

Having Musk back at the helm will increase investor confidence in the stock and raise hopes he will refocus on driving innovation.

Tesla’s valuation isn’t justified by its EV business. Indeed, EVs aren’t the technological wonders they once were, and Tesla is slipping behind in terms of value and product quality compared to peers.

Tesla trades at such a high multiple because investors don’t want to miss out on the next world-changing technological advancement. Musk must be fully committed to the business to achieve ambitions in autonomous vehicles and AI.

“On the product side, more affordable models appear to be streamlined versions of the existing Model 3 and Model Y,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“It’s not quite the disruptive refresh some had hoped for, but if these versions can unlock new customer segments, it could be a net win – especially for maximizing output at current facilities.

“Then there’s the real crown jewel: autonomy. Tesla’s ride-hailing pilot is set to launch in Austin this June, with full-scale Cybercab production ramping up in 2026. In the race to bring AI into the physical world, Tesla still looks like the company with the most to gain.”

With comments overnight suggesting Musk will soon return to Tesla full-time, a bottom could be in the stock.

The FTSE 100 started the Easter-shorten week on a firm footing and continued to recover tariff-induced losses with small gains led by precious metals miners and supermarkets.

With London’s markets closed for the bank holiday yesterday, UK stocks sidestepped another day of volatility in US markets after Donald Trump attacked Fed Chair Powell’s approach to interest rates. Reports suggest Trump’s advisors were exploring ways to remove Powell from his post. 

It goes without saying that the added uncertainty surrounding the head of the Federal Reserve, seen as the ultimate backstop against financial market volatility, was not taken well by US stocks yesterday. 

“What was supposed to be a sleepy Easter Monday turned into anything but, as US markets bled red from the opening bell – light on volume but heavy on drama. With no fresh headlines to blame, the selloff seemed more like a crisis of confidence than of catalyst, as traders wrestled with a growing list of unknowns,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“The tariff tug-of-war still has no end in sight, and now the Powell power struggle is adding more fuel to the fire, with whispers from the White House about his potential ousting rattling already jittery investors. At this rate, even bad news might be seen as a buying signal – if only because something, anything, from Washington might offer a sliver of direction.”

The FTSE 100 staged a rally in early morning trade before it faded to trade flat at the time of writing.

The defensive nature of London’s leading index hasn’t made it immune to global volatility, but it has led to outperformance compared to US peers. 

London’s leading index is broadly flat since the start of 2025 after adding 0.1% on Tuesday. The S&P 500 is down 12% on the year. 

Strong gains for precious metals miners Endeavour Mining and Fresnillo on Tuesday again demonstrated London’s weighting towards ‘safe-haven’ stocks, which have helped the index outperform. 

A rally in the pair came as gold topped $3,500 for the first time in history amid heightened investor nervousness.

“The precious metal is strikingly above $3,500 per ounce for the first time and gold bugs will be eyeing the $4,000 level only a matter of weeks after the price moved through $3,000,” AJ Bell’s Russ Mould said.

Supermarkets were among the top risers as investors picked up bargains in Tesco and Sainsbury’s shares after the sector was hit by downbeat profit outlooks as a result of the price war with the discounters. 

DCC shares fell after the company announced the sale of DCC Healthcare for just over £1 billion as it streamlines its business. 

FX broker Argentex announced on Tuesday that its shares were being suspended due to concerns about its liquidity and financial position. 

The company, which itself offers foreign exchange hedging and risk management tools, appears not to have properly hedged and managed its own exposure satisfactorily amid Trump-induced volatility. 

Argentex said it had experienced increased margin calls in its FX forward and options books due to the rapid devaluation of the dollar. The company has attempted to increase the counterparty collateral it holds and is in talks with liquidity providers to bolster reserves.

Nonetheless, Argentex views its current position and ongoing market conditions as sufficient reason to halt trading in its shares.

Why is this good news for IG Markets and CMC Markets?

This isn’t an opportunity for IG and CMC to win new business from Argentex. They operate in different areas of the FX market. Argentex provides business services to companies seeking to hedge their overseas business activities, while IG and CMC primarily offer services to traders and investors seeking to profit from moves in FX, among other asset classes.

IG Group, CMC Markets, and other brokers will benefit from the severe volatility experienced in the wake of Donald Trump’s tariff announcements. The underlying causes of the stresses experienced by Argentex will play directly into the hands of IG and CMC.

Traders tend to attempt to capitalise on heightened volatility by placing more trades, generating higher income for FX and derivatives brokers.

One would expect IG Markets and CMC to announce some form of records when they report trading for the period that includes Trump’s tariffs.

Retail derivative brokers also benefit from more stringent risk management tools that aim to reduce the likelihood of retail traders blowing their accounts up and falling into a negative balance. This doesn’t make them immune to liquidity pressures, but they are much better placed to deal with an increase in volatility.

After a period of low volatility last year, the recent volatility that caused the problems for Argentex will be welcomed with open arms by IG and CMC.

Additionally, new traders often view volatility as an opportunity to start trading, which has historically led to a surge in new account openings among brokers.

IG Group and CMC Markets shares have recovered well from the sell-off, but the prospect of higher earnings is likely to support their shares going into their respective reports.

ITM Power, the Sheffield-based hydrogen specialist, has increased guidance for the year and now expects revenue to reach between £25.5 million and £26.5 million for the full year, representing a substantial 30% increase compared to previous projections of £18 million to £22 million.

The company stated that the improved outlook is due to the successful completion of additional contractual obligations and the recognition of associated revenue. ITM has announced several new contract wins over the past year.

ITM Power also revealed it has achieved net cash generation during the second half of FY25. The firm now forecasts year-end cash reserves to stand between £204 million and £205 million, surpassing the £203 million reported at the half-year mark.

This represents a significant improvement from the original cash guidance issued in August 2024 of £160 million to £175 million, which had already been revised upward to between £185 million and £195 million in January 2025.

Despite these encouraging developments for the balance sheet, the company confirmed that its adjusted EBITDA loss guidance remains unchanged at £32 million to £36 million.

“ITM is continuing to achieve a strong revenue performance while tightly managing costs and capital expenditures,” said Dennis Schulz, CEO.

“Our strong balance sheet is an important differentiator in the competitive landscape, and our contract backlog and sales pipeline have continued to grow. We remain well-positioned as customer FIDs accelerate through FY26.”